Ferrero, a major confectionery company, faced significant challenges during the 2021/2022 financial year, including wars, supply chain disruptions, surging energy costs, and inflation. However, the company has made solid progress in its sustainability efforts. It has been able to exceed some of its sustainability targets despite the challenges. The company committed to reducing its greenhouse gas (GHG) emissions across Scope 1, 2, and 3 and has implemented strategies such as investing in energy-efficient technologies and increasing the use of renewable energy. The company achieved a 10% increase in consolidated turnover compared to the previous year. It has also been increasing the use of renewable electricity in its factories, with 92% of global electricity coming from renewables. Scope 3 emissions, which account for the majority of the company’s carbon footprint, pose the greatest challenge as the company does not have direct control over them. Ferrero is committed to making its product packaging recyclable, reusable, or compostable and has reached 88.5% of its target. The company is investing in research and development to maximize the use of recycled materials and working with partners to develop recycling infrastructure and find solutions for hard-to-recycle materials. In terms of sourcing raw materials sustainably, Ferrero has made great strides. It has achieved high levels of cocoa traceability and completed its Cocoa & Forests Initiative Action Plan. The company sources 100% certified sustainable palm oil and is working on traceability for other ingredients. Hazelnut sourcing poses challenges due to the complex and fragmented supply chains in some regions, but Ferrero is committed to achieving greater traceability and improving social and environmental practices in the sector. The company has also identified the most important human rights issues in its value chain and is working to address them. Overall, Ferrero’s sustainability efforts have remained strong despite the challenging financial year.
Ferrero’s Sustainability Goals Show Significant Advancement
